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Chapter 15. Lender Appraisal Processing Program (LAPP)
Overview Topic 1. LAPP Eligibility Topic 2. Lender Quality Control System Requirements Topic 3. Applying for LAPP Authority Topic 4. SAR Training and Initial Case Reviews Topic 5. Changes in SAR’s Employment of Lender’s Status Topic 6. Lender Responsibilities Under LAPP Topic 7. LAPP Processing Procedures Topic 8. Affiliates and Agents
Overview
June 28, 2010, Change 14
This section has been updated to add subsection lettering and to make minor grammatical edits.
a. Purpose of LAPP
The purpose of the Lender Appraisal Processing Program (LAPP) is to speed up the time to loan closing by allowing VA-authorized lenders to receive appraisal reports directly from appraisers and process them without VA involvement.
b. How LAPP Works
There are basically four steps in processing LAPP cases.
Stage Description
1 The LAPP lender requests VA assignment of a fee appraiser and a VA loan number (same as any other case) and identifies the case as “LAPP.”
2 The VA-assigned appraiser sends the appraisal report directly to the LAPP lender’s VA- approved staff appraisal reviewer (SAR).
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3 The LAPP lender’s SAR
reviews the appraisal report for completeness and conformity with industry-accepted appraisal practices and techniques as well as other VA requirements,
determines the reasonable value of the property and any conditions which must be met prior to VA guaranty of the loan, and
sends the veteran buyer a written notice of the value which includes any conditions or requirements upon which the VA loan guaranty is contingent.
4 The LAPP lender then underwrites and closes the loan on the automatic basis and requests VA guaranty.